IDEAS home Printed from https://ideas.repec.org/a/ucp/jacres/doi10.1086-726428.html
   My bibliography  Save this article

A Picture Is Worth a Thousand Dollars: Visual Aids Promote Investor Decisions

Author

Listed:
  • Brian Scholl
  • Adam W. Craig
  • Alycia Chin

Abstract

Policymakers emphasize that fees should be an important consideration in making investment decisions that support savings, retirement and other consequential, long term financial outcomes. Nevertheless, retail investors tend to prioritize recent returns. In nonfinancial domains, visual aids designed with choice architecture principles help convey complex quantitative information and reduce decision biases. The current work explores how a variety of mutual fund visual aids affect investment decisions. Across three studies, including two with incentivized national samples (N=4,588), we demonstrate that visual aids displaying mutual fund fees lower fees paid by up to 25% compared to legally compliant disclosure documents. We address important public policy implications relevant to investors and regulators.

Suggested Citation

  • Brian Scholl & Adam W. Craig & Alycia Chin, 2023. "A Picture Is Worth a Thousand Dollars: Visual Aids Promote Investor Decisions," Journal of the Association for Consumer Research, University of Chicago Press, vol. 8(4), pages 416-428.
    • Handle: RePEc:ucp:jacres:doi:10.1086/726428
    DOI: 10.1086/726428
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/726428
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: http://dx.doi.org/10.1086/726428
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: https://libkey.io/10.1086/726428?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:jacres:doi:10.1086/726428. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journals Division (email available below). General contact details of provider: https://www.journals.uchicago.edu/JACR .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.